Which of the Following Is a Disadvantage of a Corporation

question 21

Multiple Choice

Which of the following is a disadvantage of a corporation compared to a sole proprietorship?

• A)Limited liability
• B)Difficulty raising start-up money
• C)Lack of profitability
• D)Double taxation of corporate income
• E)Vulnerability in the case of the death of an owner

Gain insights into special considerations and interventions tailored to clients' diverse backgrounds, including refugees and older adults.

Understand techniques for empowering clients, enhancing resources, and fostering resilience in the face of adversities.

Understand the principles of managing working capital and its components.

Identify and evaluate the sources of short-term financing and their costs.

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Definitions:

Maximum Capacity

The highest level of output that a company can sustain within a given period without compromising product quality or operational efficiency.

External Financing

Obtaining funds from outside sources, such as loans, stock issues, or bonds, to finance business operations or investments.

Production Capacity

The maximum amount of goods or services that a manufacturing facility can produce over a given period under normal conditions.

External Financing

Funds raised from outside the company, typically through borrowing or selling equity.